i would like to know some indicators that will catch a trend early
2 Likes
Ichimoku is the clearest
3 Likes
i like this.
The earlier you catch a trend, the less likely it is to continue. Most traders think the reverse.
There’s always the argument that getting in early catches more of the pips that are on the table. But in reality, the big money does not come from early entry, it comes from pyramiding, adding to a trend-following position. And adding and adding and adding.
10 Likes
Agree. My best trades have been when I entered a few candles into a trend. Of course, some didn’t last the hoped for distance, but I still made welcome profits.
As for pyramiding, this could be risky, especially for noobs, and I wouldn’t bet the farm on it. What would work is each pyramid reaching the break even point - hence a no loss situation - before filling up your boots again.
3 Likes
I use Moving average and Ichimoku.
exactly so
the key is to keep adding to winning positions, in the direction of a continuing trend, in such a way that the risk exposure is never greater than it was at the point of opening the original trade
3 Likes
With the help of moving averages Indicator we can make a correct Estimation of the market Trends.
2 Likes
Agree. Confirmation is key
MACD and RSI both work great for me. It was not like I read about them and started to use them. I tried these in my small investment trades so that I know whether they are worth making bigger investments or not.
MA and Ichimoku. Altho, the latter is not recommended for beginner.
On which time frame you use the MA and on how many periods?
30min to 1hr
1 Like
I have been making use of the MACD Indicator for many years with success. We just need to understand how it works to be able to use it.
1 Like
It depends on how one defines “trend”.
And also the time dimension, like if you’re looking for the short-term, medium-term, or long-term trend.
For example, a new long-term uptrend could be defined if the price closes above a specific moving average like the 200 SMA.
There can also be a short-term countertrend within a longer-term trend.
If you really want to get in “early”, you can rely on price action and enter on breakouts/breakdowns or candlestick patterns (e.g. pin bars).
Lastly, there are tradeoffs trying to “catch a trend” early vs. late.
The earlier you try, the higher the risk of a fakeout or being whipsawed. But if you’re right, you catch most of the move.
The later you wait, the lower the risk of a fakeout or being whipsawed. But you may miss a significant part of the move.
All depends on whether you are looking to trade short term trends or longer term trends. For me, I’m looking to trade as few times as possible each year, so I’m looking at the weekly charts, and using daily for entries/exits. Sometimes 4 hour, but not often. If you’re trading daily time frames use the hourly for entries/exits.
Everyone has their own ideas on MA - for longer timeframes I use 30 and 6.
2 Likes
I believe no signal indicator is effective enough to predict where prices will move in the future. Multiple indicators can provide better trading signals and can increase your chances of winning
Combination of MACD, RSI AND Bollinger bands are mostly used and leading intraday indicators to monitor the market
What indicator is suitable for detecting when to add more?
Don’t worry about catching the trend early.
The words of a famous trend trader ( I forget his name) -
" You can have the first 20% and the last 20% - I will have the 60% in the middle"
Indicators - My personal preference would be 8EMA 20SMA and 50SMA all fanning out.
On lower timeframes that is.
1 Like
so basically price is the best indicator for this
that’s what im picking up here right?